Luxembourg 14 September 2022. As part of an official visit to Luxembourg, the Bourse Régionale (BRVM) signed a memorandum of understanding (MoU) with the Bourse du Luxembourg (LuxSE). This memorandum of understanding, which focuses mainly on sustainable finance, marks the first official step in what is hoped to be a long cooperation aimed at strengthening sustainable finance in the WAEMU area.
“Sustainable finance represents a financing opportunity for emerging countries because they have the possibility to attract a new type of investors, who otherwise would not be interested in their bond issues. That is why I am happy about the signing of this memorandum of understanding with the Luxembourg Stock Exchange for the development of sustainable finance in the Economic and Monetary Union of West Africa”, said Edoh Kossi AMENOUNVE, Director General of the BRVM.
Cooperation between continents
The BRVM is one of the pillars of the financing of the economies of the countries of the Economic and Monetary Union of West Africa, which works for greater integration between Benin, Burkina Faso, Côte d’Ivoire, Guinea- Bissau, Mali, Niger, Senegal. and Togo. It is common to these eight countries. The Luxembourg Stock Exchange (LuxSE) is the main listing venue for international debt securities and a pioneer in sustainable finance. It created the Luxembourg Green Exchange (LGX) in 2016, the first global platform for sustainable finance, which currently has more than 1,400 sustainable debt securities.
Through this memorandum of understanding, the two exchanges are committed to explore the creation of a bond market dedicated to green, social, sustainable and sustainable bonds to the BRVM, and to analyze opportunities for dual listings. In addition, the two institutions are committed to collaborating on sustainable finance training programs within the framework of the BRVM Academy.
“Strengthening cooperation with our African counterparts is a key priority for our Exchange this year. We are pleased to collaborate with the BRVM and work together to help the BRVM establish a sustainable bond market and make it easier for the international investors to identify investment opportunities that finance sustainable development in South Africa. While Europe is at the head of sustainable finance, Africa accounts for only a fraction of the global issuance of green bonds. This will change as sustainable capital is needed to finance sustainable development in the region,” said Julie Becker, CEO of LuxSE.
Progress through financial education
In 2019, the BRVM announced the launch of the BRVM Academy to train financial professionals and the general public of the West African Economic and Monetary Union in key theories of capital markets and stock exchanges. Similarly, in May 2020, LuxSE launched the LGX Academy, which enables participants to better understand the fundamental principles of sustainable finance as well as the regulations and key players that shape the industry. Reflecting their strong desire to fill the knowledge gap that prevents the acceleration of sustainable finance, the two institutions will now partner to develop training modules in sustainable finance as part of the BRVM Academy.
About the Luxembourg Stock Exchange
The Luxembourg Stock Exchange (LuxSE) is the gateway for international investors. With more than 39,000 listed securities, including 35,000 debt securities, from 2,000 issuers in 100 countries, LuxSE is the world’s leading exchange for the listing of international debt securities and offers a unique and integrated service covering listing , trade and information.
In 2016, LuxSE launched the Luxembourg Green Exchange (LGX) and became the first exchange in the world to operate a platform entirely dedicated to sustainable values. LGX has become a meeting place between issuers of sustainable products and impact-conscious investors, and includes more than 1,450 green, social, sustainable and sustainable bonds from 250 issuers in 50 countries. For more information, go to www.bourse.lu
Launched on December 18, 1996 in Cotonou (BENIN), the Regional Stock Exchange (BRVM) is a perfectly integrated electronic stock exchange common to 8 West African countries: Benin, Burkina Faso, Côte d’Ivoire, Guinea- Bissau, Mali. , Niger, Senegal and Togo. In addition to capital securities (shares), the BRVM offers the admission and marketing of debt securities (bonds).
The BRVM offers investors a world-class stock exchange environment with state-of-the-art trading and settlement/delivery systems. The BRVM chairs the Executive Committee of the African Securities Exchange Association (ASEA) and is a member of the West African Capital Markets Integration Council (WACMIC). Since November 2016, it has been classified in the category of frontier markets by the MSCI.